U.S. Steel Canada moving quickly to sell Hamilton assets

TORONTO, Sept 23 (Reuters) - United States Steel Corp's
Canadian unit is preparing to quickly put its Hamilton
assets up for sale and also hopes to run an auction process for
its operations on Lake Erie, court filings showed on Tuesday.

The steelmaker's Canadian subsidiary filed for protection
from its creditors last week and said it was considering asset
sales. The proposed auctions do not mean that a sale will
necessarily be completed.

In an affidavit, U.S. Steel Canada President Michael McQuade
said a sale process for the Hamilton Works is an "important and
sensible step" which will give the company and its stakeholders
"a better understanding of the potential options available."

Much of U.S. Steel Canada's value is seen residing in Lake
Erie, with years of job cutbacks, environmental liabilities and
the weight of a massive retiree base weighing on the worth of
the Hamilton assets.

The restructuring process could affect more than 14,000
retirees who depend on U.S. Steel pensions. The Canada unit has
a pension fund deficit of more than $750 million.

The filings, posted online, include a timetable agreed to by
the Canadian unit and its U.S. parent, which is responsible for
interim financing during restructuring.

The timetable says a sale and investment solicitation
process for the Hamilton Works should start within 60 days of
the Canadian unit's filing for creditor protection.

A similar process for the Lake Erie works is due to start by
March 15, 2015. Any sale, refinancing or investment should close
no later than Oct. 31, 2015.
(Reporting by Allison Martell; Editing by Lisa Shumaker)